- Analytics
- News and Tools
- Market News
- USD/MXN: Peso at risk of falling if Banxico minutes lack arguments for accelerated hikes – Commerzbank
USD/MXN: Peso at risk of falling if Banxico minutes lack arguments for accelerated hikes – Commerzbank
In Mexico, Thursday’s publication of the minutes of the May meeting might provide further insights into the diverging views on future rate developments. In absence of hawkish arguments pointing towards accelerated rate hikes, the peso could come under pressure, economists at Commerzbank report.
How hawkish will the Banxico minutes sound today?
“The majority of the central bankers had voted in favour of a 50bp rate hike to now 7% with one member favouring a larger step. Banxico’s hawkish approach had further fuelled the market’s rate expectations, quite a few market participants seem to expect a larger rate step in June. That means a lot seems to have been priced in already, which is also reflected in the robust peso.”
“We see the risk of small peso losses if the minutes are not characterised by hawkish arguments which point towards accelerated rate hikes.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
